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Analysis

Konica Minolta Healthcare to Pay $500K to Settle False Claims Act Allegations

By John Commins  
   August 28, 2020

Federal prosecutors claim that Viztek LLC, a former subsidiary of Konica Minolta, falsely claimed that its EHR software was HHS compliant.

Konica Minolta Healthcare Americas Inc. will pay $500,000 to settle whistleblower allegations that a one-time subsidiary misrepresented the compliance status of its electronic medical records, the Department of Justice said.

Federal prosecutors in Newark, New Jersey, alleged that Viztek LLC, a former subsidiary of KMHA, violated the False Claims Act when it fraudulently obtained certification for its "EXA EHR" software by falsely claiming that the product complied with Department of Health and Human Services certification requirements. 

Because of the deception, eligible providers who used EXA EHR inadvertently submitted false claims for incentive payments to Medicare, prosecutors said.

KMHA acknowledged the settlement, but denied the allegations, which were raised in a whistleblower lawsuit. 

KMHA Responds

Wayne, New Jersey-based KMHA said "the allegations emanated from a time prior to KMHA’s acquisition of Viztek."

"The company cooperated fully with the government's investigation and maintains that the allegations are unfounded," KMHA said. "Given the high costs and future time demands associated with the investigation, this resolution is in the best interest of the business."

"Without the ongoing management distraction, KMHA can assure its focus remains true to its core mission of contributing to life changing healthcare solutions."

“The company cooperated fully with the government's investigation and maintains that the allegations are unfounded.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.

Photo credit: Mark Van Scyoc / Shutterstock


KEY TAKEAWAYS

Federal prosecutors alleged that EHR vendor Viztek LLC violated the False Claims.

Viztek allegedly fraudulently obtained certification for its "EXA EHR," software by falsely claiming that the product was HHS compliant. 

Because of the deception, providers who used EXA EHR inadvertently submitted false claims for incentive payments to Medicare.

KMHA acknowledged the settlement, but said "the allegations emanated from a time prior to KMHA’s acquisition of Viztek."


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